US-based medical technology company Halyard Health has entered into an agreement to acquire privately owned medical device company, CORPAK MedSystems (Corpak) for $174m.
Corpak, privately held by Linden Capital Partners, is instrumental in innovating enteral access solutions to enhance patient outcomes, safety and comfort.
Headquartered in Illinois, US, Corpak accounted for a sale of approximately $54m last fiscal year.
The company’s existing portfolio of nasogastric tubes will add to Halyard’s existing enteral feeding products, as well as provide patients and caregivers access to a comprehensive offering of enteral feeding solutions.
Halyard chairman and CEO Robert Abernathy said: "Corpak’s business aligns well with our existing medical devices segment with slightly higher sales growth and similar gross margins.
"This first acquisition is an important step in achieving our strategic vision of transforming Halyard into a leading medical devices company, and positioning our business for future growth."
The potential acquisition is expected to be $0.05 accretive to Halyard’s current fiscal year adjusted dilutive net earnings per share excluding acquisition, integration-related and intangible amortisation charges.
The transaction is expected to usher in a $0.15 addition to Halyard’s financial portfolio next year.
The closing of the acquisition is subject to the approval of Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
In this transaction Robert W. Baird served as Halyard’s exclusive financial advisor, while the outside legal counsel for Halyard was Alston & Bird.
For Corpak, Houlihan Lokey served as financial advisor and Kirkland & Ellis served as legal counsel in connection with this transaction.